Appraisal Process

As-Is Value

The value of a property in its current physical condition, as of the effective date of the appraisal, without any hypothetical conditions or extraordinary assumptions about future improvements or changes.

As-is value represents what the property is worth right now, in its present state. This is the most common type of value opinion for existing property mortgage transactions. It contrasts with "as-completed" value (what the property will be worth after proposed renovations or construction), "as-stabilized" value (after reaching typical occupancy), and "as-proposed" value (for planned but not yet built improvements). Lenders typically require as-is value for purchase and refinance transactions.

Related Terms

Market Value

The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus..

Prospective Value

A forecast of a property's value at a future date, based on anticipated changes in market conditions, property improvements, or other factors.

Extraordinary Assumption

An assumption that is directly related to a specific assignment and, if found to be false, could alter the appraiser's opinions or conclusions.

Hypothetical Condition

A condition that is contrary to known fact but is assumed for the purpose of analysis.

More in Appraisal Process

View all

Scope of Work

The type and extent of research and analysis performed in an appraisal assignment.

Effective Date (Date of Value)

The date on which the appraiser's opinion of value applies.

Intended Use

The use or uses of an appraiser's reported appraisal or appraisal review as identified by the appraiser based on communication with the client at the time of the assignment.

Engagement Letter

A written agreement between the appraiser and client that outlines the terms of the appraisal assignment, including the property, intended use, scope of work, fee, timeline, and any special conditions..